B. P. JEEVAN REDDY, CJ.

( 1 ) IN this reference made under Section 256 (1) of the Income-tax Act, 1961, as many as eleven questions are stated, eight at the instance of the Revenue and three at the instance of the assessee. The questions referred at the instance of the Revenue are :

"1. Whether, on the facts and in the circumstances of the case and on the input of the provisions of Sections 144a and 144b of the Income-tax Act, 1961, the Inspecting Assistant Commissioner was not competent to give directions to the Income-tax Officer in the manner he did ?

( 2 ) WHETHER, on the facts and in the circumstances of the case, the object Clause 2 (h) of the deed of trust dated January 24,1944, is of charitable nature ?

( 3 ) WHETHER, on the facts and in the circumstances of the case, the donations made to other charitable trusts would be hit by the provisions of Section 11 (3) of the Income-tax Act, 1961 ?

( 4 ) WHETHER, on the facts and in the circumstances of the case, the authors of the trust and/or its trustees had substantial interest in M/s J. K. Commercial Corporation ?

( 5 ) WHETHER, on the facts and in the circumstances of the case, the interest/rent received by the assessee from various concerns was not adequate within the meaning of Section 13 (2) (a) of the income-tax Act, 1961 ?

( 6 ) WHETHER, on the facts and in the circumstances of the case, the shares of M/s. J. K. Synthetics ltd. received by the assessee-trust in earlier years would not be hit by the provisions of Section 13 (2) (h) of the Income-tax Act, 1961 ?

( 7 ) WHETHER, on the facts and in the circumstances of the case, the transactions carried on by the assessee in shares would disentitle the assessee from being treated as a charitable institution within the meaning of Section 2 (15) of the Income-tax Act, 1961 ?

( 8 ) WHETHER, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that there is no mistake apparent on the face of the record in its order dated September 27, 1977 ?" 2. The three questions referred at the instance of the assessee read thus :

"1. Whether, on the facts and in the circumstances of the case, the Tribunal erred in law in not adjudicating upon the issues as specifically raised and pleaded on behalf of the assessee-trust regarding the lack of jurisdiction of the Income-tax Officer in considering three new issues during the reassessment proceedings, although the said issues were neither considered in the relevant original assessment nor were the subject-matter of directions by the appellate authority, while setting aside the original assessment ?

2. Whether, on the facts and in the circumstances of the case and having regard to the relevant directions contained in the appellate order remanding the assessment proceedings to the income-tax Officer, the Income-tax Officer exceeded his jurisdiction in considering and adjudicating upon three new issues relating to the eligibility of the trust for exemption, although the said issues were neither considered in the relevant original assessment nor were the subject-matter of directions by the appellate authority while setting aside the said original assessment ?

3. Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in holding that the second proviso to section 13 (1) (c) of the Income-tax Act, 1961, did not save the transactions for use of application of funds made before June 1, 1979, from the disability arising under Section 13 (2) (h) of the said Act ?"

3. The assessee is a trust. The assessment years concerned are 1972-73 and 1973-74. Calendar years 1971 and 1972 were, respectively, the previous years.

4. The assessee-trust was created by an instrument of trust executed on January 24, 1944. The assessee claims to be a religious and charitable trust. The objects of the trust are found in Clause 2 of the deed of trust. It reads thus :

" (a) The construction of temples, dharmashalas and chatrams, wells, school buildings and bu

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